Monday, November 5, 2012

ALLOWANCES


Department             :         Human Resources
Subject                   :         ALLOWANCES      



POLICY

Allowance in addition to the paid rates for each classification will be paid as required and/or approved, and in accordance with related industrial legislation. In cases where the industrial legislation is silent, special allowances to compensate for specific circumstances may be approved.

Such allowances may be ongoing, relative to a particular shift, process or work environment, or temporary in nature for a specific period.

PROCEDURE

In every case, the reason for an allowance and the payment of such allowance is to be substantiated and approved by HR.

A schedule of approved allowances will be maintained by HR. Any variation to these allowances will be communicated to all Heads of Departments, as required. Wherever practicable, allowances should be consistent and standard, and the number of allowances should be minimized.

Review of Allowances
1.    Allowances set by industrial awards/legislation and paid at award rates, will be increased by award variation. Those allowances determined by the Company in excess of the award allowance rate, or in addition to legislative provisions will be reviewed annually by HR.

All-Purposes Rates
1.    Permanent allowance, being part of an employee's total wage rate will receive all purpose consideration for daily rate calculations, as detailed in the allowance schedule.

2.    Temporary allowances or per hour allowances will not normally be included for all purposes, e.g. dust money, temporary higher duties allowance, etc.


Higher Duty Supervisory Allowance

1.    An employee temporarily appointed as replacement supervisor, and or Head of Department (HOD ad interim) will receive the approved supervision allowance rate for the duration of such appointment.

2.    Allowances are not to be expressed as percentages of a base rate, manager's rate or any other formula. In each case the allowance will be a flat amount as approved in the allowance schedule.


Approval Process

1.    All allowances, including permanent, temporary and casual allowances are to be submitted by the Head of Department via a Personal Action Advise Form, duly endorsed by the Head of Department, to HR for review and Management's approval.

2.    Under no circumstances may employees be informed of impending allowance prior to approval.

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